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Moody's US Debt Downgrade; Oh my, this could be HUGE
Moody's just warned the US that it is at the point of losing its top Bond rating status, due to huge US spending. This rating was given in 1917, when Moody's first rated US debt. Why would Moody's cut US debt rating? Perhaps that they know something not in the public domain yet, we all know that the US overspends, what else to it is there? We have to remember that behind Moody's there is Berkshire Hathaway, run by Warren Buffett the Omaha Oracle. Are they expecting something much worse to come? If more rating agencies announce the same, it could be huge for the Markets. In uncertain Market times (like now), the riskier assets are sold and the flight to the safety moves things to US Treasuries. From this safety flights, the dollar get a lot of support. With the Moody’s downgrade, these Bonds won't have the same appeal to investors, who in turn will be looking for some other safe assets to hedge their risk, outside of the Greenback. Watch out for other Rating Agencies moving in on US Debt valuations, they may assist a major market shift. Full Story on our Forex Blog, 'A View From Afar'. [url]http://forexblogviews.blogspot.com/[/url] Semr TheLFB's Man In Europe